On the 10th (local time), the three major indexes of the New York Stock Exchange returned their initial gains and closed mixed.
On the New York Stock Exchange (NYSE), the Dow closed at 32,160.74, down 84.96 points (0.26%) from the previous day. The Nasdaq, centered on technology stocks, rebounded 114.42p (0.98%) to 11,737.67, and the S&P 500 rose 9.81p (0.25%) to 4001.05.
Of the 11 sectors of the S&P 500, four sectors rose by 0.93%, health care 0.33%, technology stocks 1.58%, and communication service 0.84%, while the other 7 sectors fell. △Consumer discretionary -0.3% △Consumer staples -0.76% △Financial -0.8% △Industry -0.65% △Raw material -0.59% △Real estate -2.29% △Utility -1.24%.
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The stock market showed extreme volatility on the day ahead of the April Consumer Price Index (CPI) to be released the next day. The stock market was supported by a buying trend and a decline in the 10-year Treasury bond yield following the decline over the past three consecutive trading days, but concerns regarding inflation (inflation) and a recession caused by the US Federal Reserve (Fed) decision to raise interest rates increased investor sentiment pressed
Technology stocks, which had fallen sharply on the same day, rose once more and led the stock market. Shares of Microsoft and Apple rose more than 1%, while shares of Intel and Salesforce rose more than 2%.
Stocks were also supported by the 10-year U.S. Treasury yield falling below 3% amid growing concerns that the Fed’s rate hike might slow the economy. The 10-year U.S. Treasury yield fell sharply to 2.989% from 3.079% the previous day.
However, the Fed’s aggressive austerity measures, the Ukraine crisis, and China’s lockdown measures put pressure on investor sentiment.
Fed officials hinted at several rounds of 50 bps (1 bp = 0.01 percentage point) hikes in subsequent meetings.
Federal Reserve Bank of New York Governor John Williams and Cleveland Fed President Loretta Mester both said they should consider raising rates by 50 basis points at their regular meetings of the Federal Open Market Committee (FOMC) in June and July.
Fed Director Christopher Waller also said that now is the time to raise rates when the economy can afford it. However, he did not specifically mention the extent of the rate hike in the future.
Analysts in the New York Stock Exchange predicted that the market conditions would be difficult to improve for the time being.
Tim Lesco, senior asset expert at Mariner Wealth Advisor, said in an interview with CNBC, a US economic media outlet, “If there is no expectation that the pressure on the stock market will decrease, the market will continue to show direction.”
“We are in a market where no rally can sustain,” said Paul Hickey, co-founder of Bespoke Investments Group.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), also known as the ‘Wall Street Fear Index’, fell 5.06% to 32.99.
European stock markets rebounded.
The London Stock Exchange’s FTSE 100 index rose 26.64p (0.37%) to 7243.22 from the previous day. Germany’s Frankfurt Stock Exchange’s DAX Index rose 154.07 points (1.15%) to 13,534.74, and the Paris Stock Exchange’s CAC40 index closed 30.89 points (0.51%) up at 6,116.91. The pan-European Euro Stoxx50 index closed at 3554.80, up 27.94p (0.79%) from the previous day.
Oil price falls below $100 a barrel amid difficulties in China’s lockdown measures and EU sanctions deal
International oil prices fell below $100 per barrel on concerns over a decrease in oil demand due to China’s zero-corona policy and a stronger dollar.
On the New York Mercantile Exchange (NYMEX), the West Texas Intermediate (WTI) for June contract closed at $99.76 per barrel on the same day, down $3.33 (3.2%) per barrel from the previous day. It is the lowest level since April 25.
As China’s lockdown measures prolong, concerns regarding an economic slowdown have grown, and concerns have grown that oil demand might decrease in the future.
As the coronavirus continues to spread, Beijing, China, has shut down 10 more subway stations, halting the operation of a total of 70 stations. About 100 city bus routes were also suspended and a total of 380 were suspended. In addition, starting on the 12th, all public places will require a negative PCR test, and classes in kindergartens and elementary, middle and high schools in the city will be postponed indefinitely.
Reports that it is difficult to reach an agreement on the 6th sanctions once morest Russia by the European Union (EU) to ban the import of Russian crude oil also weighed on oil prices.
Hungary, which is pro-Russian, continues to oppose the oil embargo. It has already been found that an item banning the shipment and transportation of Russian crude oil by EU tankers has been omitted due to opposition from Malta, Cyprus and Greece. This suggests that the EU’s agreement on sanctions once morest Russia is facing difficulties.
Gold prices continued to fall on the strength of the US dollar. On the New York Mercantile Exchange (COMEX), the price of gold futures for June delivery fell by $17.60 (0.95%) per ounce to close at $1841.00.
- reporter information
- Hye-won Jang
- hyewonchang@ajunews.com
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